Uniform RUSAL requirements for Suppliers

1 General conditions

UC RUSAL (further – RUSAL) takes it upon itself to ensure high-quality delivered products for its
suppliers. It guarantees the fulfilment of these obligations only when dealing with reliable Suppliers.

RUSAL is devoted to long-term cooperation with Suppliers of purchasable products. Such cooperation
allows for successful business practices based on fulfilment by Suppliers of these RUSAL requirements
and expectations.

The present rules are established for suppliers of RUSAL and adherence to them serves as a ground for
successful certification of Supplier and for attribution to the Supplier the status of an ‘Approved
Supplier’.

RUSAL applies five high-priority indicators to evaluate purchasable products (in order of importance):

Product quality

Price

Delivery conditions

Payment conditions

Delivery volume

RUSAL encourages suppliers to take initiatives aimed at constantly improving production and business
processes, in particular, improving product quality , decreasing production costs and developing solid
relationships with clients.

Stipulations of this document encompass all types of products (further – Products), delivered by the
Supplier to RUSAL.

2 Strategy—No Defects

Any Supplier of the Company is to apply to strategy of ‘ZERO DEFECTS’ (all delivered products should
comply with the requirements of the contract and normative documentation) as well as to principles of
constant quality management improvement.

3 Quality management system requirements for suppliers and sub-suppliers

RUSAL assumes that its Suppliers already set up the Quality management system (further - QMS)
according to international standards (ISO 9001 or/and ISO/TS 1694) and that the QMS is maintained in
operating condition and will constantly progress.

The existence and functioning of QMS is to be approved by a certificate issued by a certification

body.
 RUSAL also assumes that when new types of products will be introduced (or when retrofitting
production facilities) Suppliers will apply such procedures as FMEA, APQP, SPC, MSA, PPAP.

Besides, the Supplier has to stick to the quality requirements established by the company for its
consumers.

The quality of the final product depends on the quality of its components, therefore:
a Supplier must cooperate with sub-suppliers just as much as RUSAL cooperates with suppliers,;

it is necessary to explain to sub-suppliers that they are subject to the same requirements as the
Supplier.

A Supplier must guarantee that its sub-suppliers also comply with the ISO 9001 (and /or ISO/ TS
16949) requirements and it constantly develops its own quality management system.

4 Audits

In order to make QMS comply with RUSAL requirements the Supplier organises audits (of the
system, of the process or of the product) at production facilities. An audit should be made after
preliminary notifying the Supplier.
The Supplier gives RUSAL access to all production areas, stock or supplementary units, and
documents about quality control.
In the event of discrepancies, caused by poor quality of the delivered products, the Supplier also has
to ensure the possibility of audit being carried out in the facilities of its sub-suppliers.
At the end of the audit RUSAL notifies the Supplier about the results of the audit. If it necessary to
make any adjustments, the Supplier is obliged to provide a plan detailing what measures are to be taken
and how this plan is progressing.. It also commits itself to reporting to the Company on what adjustments
were made.
5 Production

In order to be able to fulfil requirements and expectations of RUSAL, the Supplier should outline
clearly defined, fully understandable requirements for products and the production process. The Supplier
must possess all the necessary technology and equipment for the planned production process.
The Supplier should possess an approved production plan and follow it. On the basis of general
plan production plans for business units are to be developed and brought to those implementing the plan.
The Consumer must be notified in due course of any situation which may lead to default of rhythmic
product delivery.
The Supplier must stick to an integrated approach when organising its production. Methods to
evaluate efficiency and productivity of current operations should be developed. These requirements must
be based on lean production principles.

Production planning must take into account materials transport, handling operations and the use of
available spaces.
 Planning of measure and trial processing must be made in such a way that all specific
characteristics of the products undergo quantitative analysis with the aim of forming a statistic base of
the products’ reprocessing management.
Measurement methods must be coordinated with RUSAL, in particular the methods of providing
the acceptance control from a supplier and the entrance control at RUSAL.
It is RUSAL that jointly with suppliers at an early stage of logistic planning defines the packaging
of products to be transported and to be stored and ensures conformity of package with loading equipment.
During industrial supplies any discrepancy in logistics must be documented in written form with
RUSAL.
6 Infrastructure

Capital and technological equipment of the Supplier must be in operating condition. The Supplier
must develop the system of preventive equipment maintenance. It is necessary to determine optimal
intervals of technical equipment service (its breakdown can lead to delivery failure or to lower quality)
and to define the strategy of on time delivery in case of equipment breakdown.

Suppliers must minimise risks and be highly independent of municipal services and office support
services of external organisations.

7 Personnel management

The Supplier must have an approved management structure. Management must clearly inform the
staff on behalf of their duties and authority.

Duties and authority of officials must be documented (employment duties, instructions, labour
contracts).

Planning of personnel training requires the supplier to analyse practical qualification of the staff.
When choosing courses for personnel , preference is given to advanced training, knowledge acquisition in
the field of quality and production system, including such instruments as FMEA, APQP, SPC, MSA,
PPAP, Lean production, TPM, etc. and their application.

The Supplier guarantees that its staff has the necessary professional skills and relevant
qualifications and that the personnel are qualified to perform each phase of production.

8 Quality management system

In order to prevent deliberate use and delivery of products inconsistent with requirements, the
Supplier must ensure that they be extracted and separated from useful products. The Supplier must deal
with unusable products using the following methods:

Take actions to prevent these products from being used or applied;

Take actions to prevent the product from being used as initially planned;

Take actions to eliminate the revealed discrepancy and its then;

 allow for the use, output or acceptance of these products in the event RUSAL confirms its consent
to deviate from its requirements.

Records on discrepancies nature and on any undertaken action must be updated.

The Supplier must analyse discrepancies revealed during production and by the consumer,
determine the root causes, develop corrective actions to prevent discrepancies. Records of analysis
results and of undertaken actions must be saved and transferred to RUSAL.

9 Information sharing

The Supplier must inform RUSAL in advance (without additional requests) on any changes in its
production process, use of raw materials, production facilities, changeover of its counteragents and also
on any procedure modifications or equipment for products’ testing or on other measures to ensure quality
control so that RUSAL could verify what impact these changes could have on the production process.

In the event of any Supplier's reorganisation which may have an impact on organisational structure,
Supplier must audit the integrity of quality management system and report to RUSAL about the results of
the audit and efficiency of QMS.

10 Claims to handle and measures to be taken

In the event that the Supplier has discrepancies in process or product quality, the Supplier must
analyse the reasons, develop and carry out corrective actions and make analysis on the effectiveness of
these actions.

In the event of finding discrepancies in product quality, they must be immediately reported to the
Supplier in compliance with conditions of contract (agreement). In this case the Supplier must
immediately analyse the reasons of unusable products being delivered and to report the safe date of
delivery of the products in compliance with RUSAL requirements.

In the event of a dispute about product quality, products are collectively accepted or a third party
mediates the conflict.. In the event of delivery of unusable products being the reason of suspension of
production of RUSAL business(es) or of its consumers, the Supplier must on its own account and upon
consultation with RUSAL take urgent steps to remedy the situation (overtime work, express delivery,
etc.)

If the contrary is not agreed by the parties, RUSAL has right to require from the Supplier
compensation for the expenses caused by supply of unusable products (including demands from RUSAL
clients).

Other (more detailed) requirements for Suppliers are stipulated in the Delivery contracts.